First quarter 2007
24.05.2007 - Nutri Pharma (OSE: NUT) today reports revenues of MNOK 13, 5 million and a loss of MNOK 5,9 million for the first quarter of 2007. This compares to revenues of MNOK 22,6 and a loss of MNOK 3,2 million in the first quarter of 2006...
(Oslo, 24 May 2007) Nutri Pharma (OSE: NUT) today reports revenues of
MNOK 13, 5 million and a lossof MNOK 5,9 million for the first quarter
of 2007.This compares to revenues of MNOK 22,6 and a lossof MNOK 3,2
million in the first quarter of 2006.
Out of the total sales of MNOK 13,5 in the first quarter, MNOK 12,3
million were recorded in MIG(Russia/CIS). Royalty revenues of MNOK 1.2
were recorded in the Nordic region, which is 20 % higher than the same
revenue in Q1-2006.
First Quarter 2007 Results
The consolidated operating loss is MNOK 5,9 in Q1 2007. In the same
quarter of 2006, the loss was MNOK 3,2.
Nutri Pharma had royalty revenues from
the Nordic area of MNOK 1.2 in Q1 2007, compared to MNOK 1.0 in the
first quarter the previous year. MIG achieved revenues of MNOK 12,3
in Q1 2007, compared with MNOK 21,5 in Q1 2006. The sales are achieved
through its direct sales organization in Russia and the former
CIS countries. Sales of Nutri Pro and Cosmetics accounted for 92% of
the MIG revenues in the first quarter.
Total operating expenses were reduced from MNOK 25,6 in Q1 2006 to
MNOK 19,2 in the first quarter of 2007. Total amortization costs in the
first quarter were MNOK 2,3, of which MNOK 1.9 relates to the Software
platform and the Distributor Lists in MIG and MNOK 0.4 to royalty
assets in Nutri Pharma ASA. The comparable amortization costs in Q1 2006
were MNOK 1,5.
Net financial expense was TNOK 175, compared to finance expenses of
TNOK 88 in first quarter of 2006.
Cash and other liquid assets were MNOK 1,7 as of March 31 2007, compared
to MNOK 6.2 as of March 31 2006.
Nutri Pharma ASA acquired all shares in Meridian International Group Ltd
as per 15 September 2005 for a consideration to consist of a maximum of
24 million Nutri Pharma ASA shares. A first installment of the
consideration shares consisting¨of 6 million treasury shares in
Nutri Pharma ASA was made at 15 February 2006. According to the
original contract, the balance of the purchase consideration, consisting
of a maximum of 18 million new issued Nutri Pharma ASA shares, was to be
made in one or more instalments at the latest by 31 March 2007, provided
that an independent auditor confirmed the agreed valuation of MIG.
In an amendment to the terms of the contract made on 4th February 2007
it has been agreed between the parties that the final consideration for
the Shares is to consist of a fixed minimum of 6 million shares in
NutriPharma ASA (the `Fixed Minimum Consideration`). In addition the
Sellers shall be entitled to an additional consideration consisting of
a maximum of 18 million additional shares in NutriPharma ASA
(the `Additional Consideration`) if MIG meets certain financial
performance criteria for the financial year ending 31 December 2007.
The final purchase consideration will hence be between 6 million and
24 million shares in Nutri Pharma ASA, and conditioned that an
independent auditor confirms the agreed valuation of MIG.
At 31 March 2007 the liability in the balance sheet towards the sellers
of MIG is amounting to MNOK 62.1, resulting from the outstanding balance
of 18 million NUT shares due.
Nutri Pharma ASA has received a draft proposal from the tax authorities
regarding change of the company`s tax assessments for the income years
2001-2003. The tax authorities have challenged the intra-group allocation
of expenses related to the company`s comprehensive Research and Development
activities in the period in question. The company has been asked to provide
satisfactory documentation regarding the allocation of expenses between
the company and its foreign subsidiaries. A possible result in line with
the proposal from the tax authorities may result in a partial preclusion
of approximately NOK 175 million out of the company`s current tax losses
carried forward which totals appr. NOK 359 million per 31 December 2005,
with possible future accompanying penalty tax. The net deferred tax assets
have not been recognised in the Balance Sheet of Nutri Pharma
as per 31.12.2006. Nutri Pharma is working to provide the evidence necessary
to justify its tax claims towards the tax authorities for
the period 2001- 2003.
Nordic Nutrilett, which is distributed through Collett Pharma (Orkla)
as one of their core product lines, is generating royalty revenues of
approximately MNOK 1.2. This royalty revenue has increased by 20 % compared
with the same period last year.
Russia and CIS countries
Compared to the fourth Quarter of 2006 the revenues in First Quarter
in 2007 are reduced by 25 % to MNOK 12,3. The management has a strong focus
on cost cutting and efforts to increase sales to enable MIG to provide
stable and positive results.
New EU legislation has potentially opened up new markets for Nutri Pharma.
Under the new initiative, Nutri Pharma, or its commercial partner, will
be able to apply for health claims to be used on functional food products
based on evidence from clinical studies. If approved by the European
Food Standards Authority and the European Commision, these health claims
can then be used in marketing material across the EU. This legislation will
enable us to protect our products in a rapidly growing functional food
market, and to market them with health claims which more accurately reflect
the benefits of Nutri Pharma`s technology.
Nutri Pharma ASA has on 18 April, 2007 successfully completed the private
placement of a total of 7,865,000 new shares at a subscription price of
NOK 3.10 per share. Net proceeds from the equity issue amounted to
NOK 23,162,425. This strengthening of the equity gives the company
possibilities to take advantages of strategic opportunities, included
commercialisation of its new product, NutriFemme.
Download the First quarter reoprt in PDF report here.
Oslo, 24 May 2007
The Board of Directors of Nutri Pharma ASA
FOR FURTHER INFORMATION:
Trond Syvertsen, CEO +47 23 31 08 80 / +47 91 72 14 57
Lars Helmer Enger, CFO +47 23 31 08 89 / +47 90 84 37 71